A perfect market is defined by conditions of perfect competition, which include a large number of buyers and sellers, perfect information, homogeneous products, well-defined property rights, no barriers to entry or exit, all participants being price takers, perfect factor mobility, profit maximization by sellers, rational buyers, no externalities or government intervention, and zero transaction costs. When perfect competition conditions hold, the market will reach an equilibrium where quantity supplied equals quantity demanded, resulting in allocative efficiency. However, perfect competition does not guarantee productive efficiency.